HECM TEST
1. a counseling agency's failure to follow all basic requirements required by hud could
result in which of the following:
A. termination of agency's hud approval
B. suspension of agency's hud approval
C. forfeiture of remaining federal grant funds
D. fines and or imprisonment
E. a , b , and c
F. all of the above - CORRECT ANSWER -e.
termination of agency's hud approval
suspension of agency's hud approval
forfeiture of remaining federal grant funds
2. t/f a counseling agency must offer and provide face-to-face counseling to clients that
prefer this format whenever possible. - CORRECT ANSWER -true
3. all of the below statements are requirements that each agency must follow except:
4. a .in cases where an agency does not offer unique services requested by the client,
the agency must refer the client to another participating agency, preferably in the
client's area.
5. b. an agency must maintain a national license and a separate license for each state
in which services are provided.
6. c. an agency must make reasonable efforts to provide language assistance to
persons who are limited english proficiency (lep).
7. d. an agency must notify hud and provide a copy of the updated work plan prior to
implementation of any changes to the agency's work plan - CORRECT ANSWER -b
8. t/f reverse mortgage counselors must discuss an action plan during each counseling
session. - CORRECT ANSWER -false
,9. all of the following are true of the client's required "follow up" except:
A. the follow-up must be completed by a certified hecm counselor
B. verbal attempts must be made to contact the client for follow-up
C. a written letter to the client must request the client contact the agency within
30 days of the date of the letter.
D. issuing surveys to assess housing outcomes does not fully meet the
requirement for the client follow-up and hiring a third party agency to
conduct the follow up is not prohibited. - CORRECT ANSWER -d.
10. which of the follow best defines a reverse mortgage:
A. a federally insured loan that allows borrowers 62 years and older to convert
the equity in their home into available cash and which will be paid by heirs of
the borrowers upon their passing. (hecm)
B. a mortgage available to those with 100% equity and a home in good
condition that requires no repairs.
C. a mortgage product that pays a homeowner loan proceeds drawn from
accumulated home equity and that requires no repayment until a future time.
D. a refinance of an existing mortgage only for borrowers 62 years or older. -
CORRECT ANSWER -c
11. t/f agencies are permitted to conduct marketing and outreach including providing
general information about housing opportunities and raising awareness about
critical housing topics. - CORRECT ANSWER -true
12. an agency's staff will be required to have an up-to-date knowledge of which of the
following:
A. all fha single family mortgage programs
13. b.lender product availability and rate offerings
14. c.mortgagee letters
15. d. hud's website for information on products and guidelines (www.hud.gov)
16. e. a , b , c
17. f. a , c , d - CORRECT ANSWER -f
18. t/f to receive a fha hecm loan, a borrower must first receive one-on-one counseling
from a certified hecm counselor. - CORRECT ANSWER -true
, 19. t/f a reverse mortgage counseling agency may charge a fee that exceeds the actual
cost to provide the service but only clients and related parties that are able to afford
the fee. - CORRECT ANSWER -false
20. t/f clients must not be turned away because of an inability to pay counseling fee -
CORRECT ANSWER -false
21. all are true of entities eligible to provide reverse mortgage counseling except:
22. a.an agency must have an affiliating lending institution in order to stay updated with
updating lending practices.
23. b. an agency must be have an active status on the hecm roster
24. c. an agency must receive continuing education every two years
25. d. an agency must have access to a technology that allows for adequate hud
reporting - CORRECT ANSWER -a.
26. what are the names of the 2 hud booklets that each client must receive before
completing a counseling session? - CORRECT ANSWER -preparing for your
counseling session
27. use your home to stay at home - a guide for homeowners who need help now
28. each counseling session must include discussion on all of the following except:
A. basic requirements to the reverse mortgage
B. alternatives to the reverse mortgage
C. fees and costs associated with the reverse mortgage
D. title retention
E. all of the above - CORRECT ANSWER -e
29. if the national lending limit is $625,500 and a client's estimated appraised value is
$820,000, what figure are the proposal calculations based on?
A. 625,500
B. 820,000
C. 204,500
D. the answer would depend on the regional lending limit - CORRECT ANSWER -
a
1. a counseling agency's failure to follow all basic requirements required by hud could
result in which of the following:
A. termination of agency's hud approval
B. suspension of agency's hud approval
C. forfeiture of remaining federal grant funds
D. fines and or imprisonment
E. a , b , and c
F. all of the above - CORRECT ANSWER -e.
termination of agency's hud approval
suspension of agency's hud approval
forfeiture of remaining federal grant funds
2. t/f a counseling agency must offer and provide face-to-face counseling to clients that
prefer this format whenever possible. - CORRECT ANSWER -true
3. all of the below statements are requirements that each agency must follow except:
4. a .in cases where an agency does not offer unique services requested by the client,
the agency must refer the client to another participating agency, preferably in the
client's area.
5. b. an agency must maintain a national license and a separate license for each state
in which services are provided.
6. c. an agency must make reasonable efforts to provide language assistance to
persons who are limited english proficiency (lep).
7. d. an agency must notify hud and provide a copy of the updated work plan prior to
implementation of any changes to the agency's work plan - CORRECT ANSWER -b
8. t/f reverse mortgage counselors must discuss an action plan during each counseling
session. - CORRECT ANSWER -false
,9. all of the following are true of the client's required "follow up" except:
A. the follow-up must be completed by a certified hecm counselor
B. verbal attempts must be made to contact the client for follow-up
C. a written letter to the client must request the client contact the agency within
30 days of the date of the letter.
D. issuing surveys to assess housing outcomes does not fully meet the
requirement for the client follow-up and hiring a third party agency to
conduct the follow up is not prohibited. - CORRECT ANSWER -d.
10. which of the follow best defines a reverse mortgage:
A. a federally insured loan that allows borrowers 62 years and older to convert
the equity in their home into available cash and which will be paid by heirs of
the borrowers upon their passing. (hecm)
B. a mortgage available to those with 100% equity and a home in good
condition that requires no repairs.
C. a mortgage product that pays a homeowner loan proceeds drawn from
accumulated home equity and that requires no repayment until a future time.
D. a refinance of an existing mortgage only for borrowers 62 years or older. -
CORRECT ANSWER -c
11. t/f agencies are permitted to conduct marketing and outreach including providing
general information about housing opportunities and raising awareness about
critical housing topics. - CORRECT ANSWER -true
12. an agency's staff will be required to have an up-to-date knowledge of which of the
following:
A. all fha single family mortgage programs
13. b.lender product availability and rate offerings
14. c.mortgagee letters
15. d. hud's website for information on products and guidelines (www.hud.gov)
16. e. a , b , c
17. f. a , c , d - CORRECT ANSWER -f
18. t/f to receive a fha hecm loan, a borrower must first receive one-on-one counseling
from a certified hecm counselor. - CORRECT ANSWER -true
, 19. t/f a reverse mortgage counseling agency may charge a fee that exceeds the actual
cost to provide the service but only clients and related parties that are able to afford
the fee. - CORRECT ANSWER -false
20. t/f clients must not be turned away because of an inability to pay counseling fee -
CORRECT ANSWER -false
21. all are true of entities eligible to provide reverse mortgage counseling except:
22. a.an agency must have an affiliating lending institution in order to stay updated with
updating lending practices.
23. b. an agency must be have an active status on the hecm roster
24. c. an agency must receive continuing education every two years
25. d. an agency must have access to a technology that allows for adequate hud
reporting - CORRECT ANSWER -a.
26. what are the names of the 2 hud booklets that each client must receive before
completing a counseling session? - CORRECT ANSWER -preparing for your
counseling session
27. use your home to stay at home - a guide for homeowners who need help now
28. each counseling session must include discussion on all of the following except:
A. basic requirements to the reverse mortgage
B. alternatives to the reverse mortgage
C. fees and costs associated with the reverse mortgage
D. title retention
E. all of the above - CORRECT ANSWER -e
29. if the national lending limit is $625,500 and a client's estimated appraised value is
$820,000, what figure are the proposal calculations based on?
A. 625,500
B. 820,000
C. 204,500
D. the answer would depend on the regional lending limit - CORRECT ANSWER -
a
